Buying travel insurance might just be the least glamorous part of planning a trip. In fact, it’s so boring that countless travelers skip this step entirely.
“It’s a waste of time — and a waste of money. I’ll probably be fine anyway!”
And they probably will be. But they won’t know until it’s too late.
Over the years, I’ve been scammed, robbed, and injured abroad. I’ve experienced countless delays and canceled flights, and I’ve even been stabbed.
While it’s not fun to think about, things can go wrong while traveling.
And I know that researching the best travel insurance policies for your next trip isn’t fun. There’s no question about it: reading travel insurance policies is tedious. But it’s also the most important step in planning and booking a trip.
Most people think that travel insurance is all about emergency healthcare, such as broken limbs, sudden illnesses, and hospital visits. But while that’s a significant part of what insurance covers, there is much more to it than that.
Travel insurance is a general safety net for absolutely anything that might go wrong on a trip. Delays, injuries, cancelations, political turmoil, natural disasters — travel insurance can cover it all. It kicks in when mishaps happen on the road, covering costs that otherwise could add up to thousands of dollars.
From lost luggage to canceled flights, broken bones to exotic illnesses, it can be a dangerous business going out your front door. And unless you have tons of money set aside to pay for emergency costs (broken bones alone can cost in the thousands), you’ll want to buy travel insurance.
But choosing travel insurance can be a daunting task if you don’t know where to start.
In this post, I’ll walk you through every step of the process, so that you can confidently choose a company and plan that suits your needs and budget, providing you peace of mind as you head out into the world to explore.
1. Plan your trip
Before you get serious about buying travel insurance, you’ll want to already know where you’re going and (generally) what you’re going to be doing. This is because you’ll need to choose a policy that covers your destination(s), the length of your trip, and the activities that you’ll be doing.
As you can imagine, the cost of insuring a higher-risk trip to go rock climbing in Thailand might be different than a leisurely trip through the wine regions of France. Likewise, insurance for a week in Mexico differs greatly in cost from six months backpacking in Australia. Moreover, full-time nomads have very different needs from someone going on a two-week cruise.
So, to get the ball rolling, you need to know what country or countries you’re going to and any major activities that you’ll be doing. You don’t want to purchase a plan, get to your destination, and then realize that something you have your heart set on doing wouldn’t be covered.
2. Determine your coverage needs
For most travelers, health coverage is their primary concern. The cost of injuries and illnesses can add up quickly, and no one wants to be stuck paying thousands out of pocket.
Since all travel insurance plans include some medical insurance, your task is to review the coverage limits of each insurance plan to see what works for you and your budget.
Beyond medical coverage, there are several other areas of insurance you’ll want to consider.
Do you need trip cancelation insurance? And considering how common flight delays have become, do you want coverage in case you need to stay overnight in a hotel?
What about reimbursement for your personal belongings if they get lost, stolen, or damaged?
Are you going to rent a car, and if so, might you need car rental insurance?
These are just some of the questions you need to ask yourself as you consider your travel insurance needs. You’ll then compare your needs to coverage you might already have through other insurance plans you have, whether that’s car insurance (which might cover rental cars) or trip insurance offered by a premium credit card (though don’t rely on these too heavily).
A bare-bones backpacker might just want basic emergency medical care. A mid-range flashpacker might be interested in a more comprehensive plan that also covers delays and cancelations. An adventure traveler might prioritize plans that cover extreme sports. Everyone will have different needs.
Listing out everything that you think you might need covered will make the next step that much easier. You’ll be able to see immediately what plans are right for you and not waste time looking at ones that don’t suit your needs.
3. Compare travel insurance plans
These days, there are tons of travel insurance companies to choose from. And even within insurance companies, there are various policies and tiers to compare, each offering a different level of coverage.
When comparing options, start by reviewing the medical coverage limits. A good company provides at least $100,000 USD in coverage for their base plan, though more expensive policies cover higher amounts (some are up to $2 million USD, though I think that much is unnecessary).
Make sure your plan also covers emergency evacuation. If you get into an accident while hiking in the mountains of Bulgaria, the nearest hospital could be far away. Make sure your plan covers medical transport, too, which can cost over $200,000 USD. That’s not a bill you want to foot!
A note about medical evacuation: Emergency evacuation coverage generally gets you to the nearest “acceptable” facility. So, if you break your leg hiking, you likely won’t be sent home — you’ll be sent to the nearest hospital to recover and then be released. Getting home won’t be free.
If you don’t want to stay in a foreign hospital for treatment and recovery, look into a medical transport membership like Medjet. It covers your transport to the medical facility of your choosing, including in your home country, no matter the reason. You can read more about its coverage in this Medjet review.
While comparing plans, you’ll notice that some are mainly focused on medical care while others also cover trip cancelations, trip delays, lost or stolen items, and more.
In my experience, a good travel insurance plan should cover the following:
Medical emergencies, sudden illnesses, and injuries
24-hour emergency assistance
Natural disasters or other emergencies that cause you to head home early
Emergency medical evacuation
Trip cancelations or interruptions (such as a death in the family)
Trip delays (such as if your plane is delayed, usually over six hours)
Lost, damaged, or stolen belongings (including some coverage for electronics)
Accidental death insurance and repatriation of your body
While every traveler has different needs, these are what I consider the foundation of a good travel insurance policy.
To help you find a plan that suits your budget and travel style, here are some of my suggested companies:
· World Nomads – Comprehensive all-round travel insurance. Ideal for budget and mid-range travelers.
· SafetyWing – A budget-friendly option with a deductible. Ideal for backpackers and budget nomads.
· Medjet – For additional medical evacuation coverage.
· Insured Nomads – Emergency and non-emergency coverage for digital nomads and expats.
· Allianz – Affordable annual plans for avid travelers.
4. Check the COVID-19 policy
After years in a pandemic, most travel insurance companies have updated their policies to include some COVID-19 coverage.
But not all policies are created equal. Coverage varies greatly and may (or may not) include testing costs, treatment costs, trip cancelations or delays, transportation home, and/or hotel costs associated with the need to extend your trip in order to quarantine.
In a nutshell, your chosen plan should include some sort of coverage for COVID-19, but make sure you fully understand what is and is not included.
Which brings me to my next (and probably everyone’s least favorite) step.
5. Read the fine print
At this point, you probably have a pretty solid idea of which plans work best for your trip and budget. And once again, it’s time for me to highlight the need to never assume anything when it comes to travel insurance.
Yes, that means it’s time to read the fine print.
This may just be the most unglamorous part of this whole process, but again, it’s one of the most important steps.
Policies vary depending on where you’re going, so even though an activity might be advertised as covered on an insurance company’s website, it might not actually be covered in the particular country that you’re going to.
Some companies reimburse you for all costs associated with covered incidents, while others have a deductible, which means that you’ll have to pay up to this amount before coverage kicks in. (For example, Safety Wing has a deductible for some costs. Read more about how it works in this SafetyWing review).
And, as a general rule, there are some things that you can pretty much expect won’t be covered. Most insurance policies won’t cover you if the accident was due to carelessness or recklessness on your part. That includes sustaining an injury under the influence of alcohol or other drugs, or getting your bags stolen while you walked away from them to go into a café.
Most policies also won’t cover expensive electronics or lost cash.
In terms of medical coverage, remember that travel insurance is for accidents only, for the unexpected. You won’t be covered for any non-emergency medical needs or pre-existing conditions unless that is specifically stipulated in the policy.
These are the general limits of coverage for most travel insurance policies, but again, they vary greatly between companies. That’s why it’s important to not just read the brochure or browse the website — you need to read the fine print.
6. Consider additional coverage
If you’ve done the above step and read the fine print, you may have noticed that some things you thought were covered actually aren’t. While base policies may be enough for some travelers, you might need or want more coverage.
Do you have expensive camera equipment that you’re worried about? Electronics aren’t usually fully covered by standard insurance.
Do you want to be able to cancel your trip for any reason? Usually some sort of cancelation coverage is included, but only for very specific reasons. If you want to get your money back no matter the reason, you’ll need to pay more for an add-on.
Do you want to go all out on an extreme adventure trip? You probably need extra coverage.
Are you especially concerned with being stuck in a foreign hospital for treatment if you get in a bad accident or seriously sick? You might want to get additional evacuation coverage.
Compare your specific plans and needs with the fine print of each policy so that you are 100% certain what extras you need. That way, you can ensure you’ll be covered no matter what happens on your trip.
7. Buy your policy!
Now that you’ve done all your research, it’s time to commit to a plan and purchase it for the length of time you’ll be on your trip. If you’re on an open-ended trip with no definite end date, go with a policy that lets you extend it while you’re on the road.
But no matter what, as soon as you have your departure date and ticket, buy your plan. Don’t decide on a policy and leave the tab open forever on your computer without actually buying it! Anything can happen between now and when you plan to set off, and most policies only cover you if you’ve bought the policy in advance. To avoid losing out on deposits and flight tickets if you need to cancel, buy your insurance the minute you start paying for your trip.
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Travel insurance might not be your favorite part of booking a trip. It’s definitely not mine. But you’ll be glad that you spent the time and money to protect your future self if something goes wrong.
I’ve relied on travel insurance myself time and again. I simply won’t go on a trip without it. You shouldn’t either.
Matt Kepnes runs the award-winning travel site nomadicmatt.com, which helps people travel the world on a budget. When not wandering the world, you can usually find him in Austin or NYC. You can follow him on Instagram, Facebook, and Twitter to learn more!